Can I purchase a Joint Term Life Insurance Policy or a Whole Life Insurance Policy?

Yes, you can purchase a Joint Term Life Insurance Policy in Canada. A joint policy will provide life insurance on the life of two individuals under one policy, often more economically than purchasing two single policies. Quite regularly at Canadian LIC, we assist couples looking for more affordable options to protect their family during those critical years of a mortgage or raising children.

Term Life Insurance coverage is less expensive to purchase as part of a joint policy than as two separate individual policies. That is because the policy is usually written to pay out only once, always upon the first death of the partner, and then it is settled. What’s important, though, is that once the payout has been made, the policy ends. We often see clients who are drawn to this cost-effective solution, especially when they’re managing other financial commitments.

A joint term would insure both of you for a set period, either 10, 20, 30 or even up to 50 years. At the end of that period, it expires unless you renew the policy, often at a higher rate. As its name implies, a Joint Whole Life Insurance Policy ensures you and your partner for your lifetime and has a cash value component that builds up over time. A large number of clients in Canadian LIC prefer Term Life Insurance as it is fairly economical in nature. On the other hand, there are numerous clients who prefer Whole Life Insurance due to its lifetime coverage and investment aspects.

In a Joint Term Life Insurance, on the death of one partner, the policy pays its death benefit while the coverage closes. If the surviving partner wants life insurance further, he or she has to look for new coverage. We often have to make many clients realize what this means for their long-term financial security.

Most of the time, you have the option to convert your Joint Term Life Insurance Policy to Whole Life, which will not require you to get re-examined by a doctor. Most of our clients at Canadian LIC first take Term Life Insurance because the rates are relatively lower, and then they convert it to their Whole Life Insurance once their financial situation changes.

Yes, in general, Canadian Term Insurance Rates for Joint Whole Life are higher compared to rates for Joint Term Life Insurance. This is because the Whole Life Insurance provides lifelong coverage and accrues cash value. Most clients at Canadian LIC weigh the higher cost of Whole Life Insurance against the long-term benefits, especially when planning retirement or leaving an inheritance.

Whether a Joint Life Insurance Policy is right for your family depends on your financial goals, budget, and coverage needs. If you need a reasonably priced way to provide coverage for a defined period of time, a Joint Term Life Insurance Policy may be the best option for you. If lifelong coverage and the possibility of cash value growth are what you’re after, you should seriously consider buying a Joint Whole Life Insurance Policy instead. At Canadian LIC, we help clients daily to look at their unique situations and make their best decisions.

The major disadvantage of the Joint Term Life Insurance Policy is that it pays out only once; when the first partner dies, coverage ends. This leaves the surviving partner with no coverage unless a new policy is bought. More often than not, many clients come to us out of concern for what happens after payout, and we help them explore their options for continued coverage.

Yes, you can buy a Joint Term Life Insurance Policy if you are unmarried. If you and your partner have a shared financial interest, such as a mortgage or dependents, then you would qualify for a combined life insurance policy or joint policy. At Canadian LIC, we work with many clients who are in a variety of different partnership arrangements and help them find the coverage that works best for them.

Term Life Insurance vs. life insurance in Canada: When it comes to choosing between these two types of policies, there are a few things you should look out for. Your financial goals, budget, and how many years you need the coverage are among some of them. Term Life Insurance insures you for a fixed number of years affordably, whereas Whole Life Insurance ensures your lifetime with guaranteed premiums and growth of cash values over time. At Canadian LIC, many of our clients choose Term Life Insurance for their short-term needs, while when it comes to long-term financial planning, they opt for Whole Life Insurance. We work with the client to find the best option in their particular situation.

In the unlikely event of both spouses dying at the same time, under a Joint Term Life Insurance Policy, the policy pays the death benefit according to its terms. At Canadian LIC, we have seen our share of apprehensive clients who did not quite understand how their policy would respond in the unlikely event of such a situation, and we help explain it.

Yes, most of the time, you can tailor-make a Joint Term Life Insurance Policy with riders or additional features to suit your needs. Examples are adding a critical illness rider or accidental death benefit. At Canadian LIC, we regularly assist our clients in tailoring their policies so that they get exactly what they need.

While a Joint Term Life Insurance Policy might cover only two, you can often add a child rider to the policy for an added cost. This rider would cover your child up until they reached adulthood. We find that here at Canadian LIC, many of our clients add this option when they have growing families.

In general, Term Insurance Rates in Canada are determined by several factors: your age, health, lifestyle, and the term length you choose. For example, smoking impacts greatly on your rate. We at Canadian LIC help clients understand such factors and how they will affect their insurance costs.

Your decision to go with either a Joint Term Life Insurance Policy or two separate policies, again, depends on your financial circumstances and needs. Joint policies are usually much cheaper than buying two separate ones, but they also come with the drawback of less flexibility. We have had numerous clients for whom we guide through the trade-offs of Joint Term Life Insurance Policies versus individual life insurance policies.

When you get a divorce and you have a Joint Term Life Insurance Policy, you will want to discuss what will be done with the policy. Some couples choose to cancel the policy and take out separate coverage, while others may keep the policy in force. At Canadian LIC, we often assist clients who are working through this tough situation to ensure they make an informed decision.

Generally speaking, the death benefit from a Joint Term Life Insurance Policy paid to your beneficiaries is usually considered tax-free in Canada. While this is a common benefit, we always advise our clients to consult with a tax professional to understand the full implications of their specific situation.

Most life insurance companies do allow for such changes, wherein you would be allowed to convert from a Joint Term Life Insurance to a Joint Whole Life Insurance. This kind of flexibility would be what we at Canadian LIC would be talking about with our clients, ones who actually consider getting the more affordable option and upgrading later when times get better in the financial aspects.

Suppose your Joint Term Insurance Rates increase upon renewal. In that case, you can shop around for a new policy, adjust your coverage, or consider converting to a Whole Life Insurance Policy if that option is available. At Canadian LIC, we help clients review their options to ensure they continue to have the best coverage at a price they can afford.

Finding out if a Term Life Insurance joint life policies is right for you will be based on your goals about your finances, coverage needs, and budget. First, consider the length of time you will need coverage if you are seeking an affordable way for a set amount of time. Canadian LIC will help you in all professional manners to determine and find a Term Life Insurance Policy that best fits your needs through our professional services.